Color Kinetics Inc B Case Study Solution & Analysis
NASCAR (National Association for Stock Vehicle Car Racing) is a company conducting series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Automobile Racing. 2) Stock Car Racing by NASCAR is the second largest spectator sport, with highest number of sponsors. 1) The other sources of income for Color Kinetics Inc B Case Study Analysis consists of; 10% of the overall income from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. This non collective approach brings stress in the sport. The structure of Car of Tomorrow by Color Kinetics Inc B Case Study Solution, with an intent of safety for the chauffeurs, brought different stress amongst the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that despite the reality that the business highly count on the interactions between its stakeholders, there was no identifiable service interaction strategy. The market's target consumers, direction and objectives were all unidentified.
The audit mentioned different doing not have of NASCAR in regards to absence of internal integration, absence of fan management strategy and absence of digital and social media of marketing. The company has intricate environment with independent tracks, drivers and teams. This structure with closed business culture bring different obstacles in accelerating a modification. Other partners in community includes the media networks i.e. tv and radio, and corporate online marketers.
Color Kinetics Inc B Case Study Analysis audiences was extremely loyal to the sport and the brands related to the NASCAR, making it appealing for sponsors and business marketers.
The business is presently facing the problem of declining rates of presence at racing tracks and rates of tv viewers. This can put a considerable influence on its revenues from sponsors, media rights, and from other sources of revenue.
Although the business was quite effective till 2005 with its traditional marketing strategies, but soon after 2005 the business starts facing numerous problems including decrease of its fan base. A number of external as well as internal aspects are responsible for the decline. Internal aspects consist of; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and create generational commitment. Other challenges for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc.
NASCAR core proficiencies includes it has rights of dictating rules as approving body. Guidelines and rules regarding professional stock car racing are determined by NASCAR like if any team with needed skills and resources can get in into races by following rules and regulations determined by NASCAR. All the occasions of NASCAR are sponsored by corporates because of biggest brand name commitment of fans towards brands marketed by Color Kinetics Inc B Case Study Analysis.
Weak Points in SWOT Analysis are considered as external elements. Weaknesses includes the elements that stops company to perform at needed level of efficiency. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist method. They typically utilized to form guidelines and other needed processes without intervention of others which leads to poor collaboration. NASCAR develops Car of Tomorrow without collaboration so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is likewise difficult. It was also discovered that NASCAR had no reliable technique for service communication. If it happened off track, they don't know how to manage issue. Ineffective company communication results in that they don't have clear instructions for their long term goals. They do not understand that where they want to see this sport in future.
Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external factors on which business is having competitive benefit. NASCAR typically used to rely on traditional media sources like regional paper for promotion of its sports. Usually these conventional media sources try to cover their home team and specific sort of occasions. NASCAR likewise familiarized from these traditional media outlets that sport was hard to cover. Media landscape also altered from standard to digital landscape. Newspapers went out of business. NASCAR can work on its capabilities to get maximum possible gain from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every single video which is shoot throughout race at track. If media sources like papers, publications and cable channels wish to post videos of races on their particular pages then they are required to pay licensing fees to Turner Sport. NASCAR can work on conditions and terms and try to negotiate with Turner Sports to get optimal benefits of it. Star power plays extremely important role in generating incomes from every sport. Nevertheless it was noted that Color Kinetics Inc B Case Study Help is lagging in this area i.e. star power. For example when sports fans were asked concerning popular stars and stars then NASCAR driver was not found even in leading twenty actions. So NASCAR can put efforts in this location too for earnings generation. They must assist their chauffeurs that how they can become sport stars. 4 strategic focuses which are generated by research group can also be functioned as opportunity for NESCAR. These 4 tactical focuses compares and analysis Color Kinetics Inc B Case Study Analysis strategies.
Dangers in SWOT analysis are defined as external factors that can threat to company's success. Due to the fact that if there is economic down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of people would be effected and they would be more conscious in investing their cash. Economic down turn likewise leads to boost fuel prices which also affected NASCAR. Since fans of NASCAR used to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for earnings circulation. 65 percent revenues from media rights would be distributed to race course, 25 percent profits would be distributed to completing team and remaining 10 percent would be kept by NESCAR which is sanctioning body. Contending group wished to increase their portion of profits from 25 percent due to the fact that of increase in operating cost of a race group and also there is decline in the number of full-season sponsorship. Since they are making huge financial investments to improve experience of fans, nescar also faces risks from other sponsors. For instance which includes upgrading existing opportunities, constructing new avenues, offering Wi-Fi center and also providing other interactive mediums to connect sports on smart devices. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational commitment. So the difficulty is that the family system in America was changing leading to reduction of influence of married male fan base over their children. Together with it perceptions about automobile was also altering with viewing automobile a car to reach at point B from point A, instead of as a fun project. If NASCAR make substantial investments in brand-new segments which are based on brand-new consumers then it may deal with unfavorable remarks from its core fan base, now.
Porter's Five Forces Analysis
It is important to comprehend market in which company is working due to the fact that NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are used to recognize success, intensity and beauty of NASCAR business.
This force indicates capability of competitors. Teams normally represents sponsors in NASCAR and the medium of marketing is drivers. It can be stated that chauffeurs and race cars and trucks are competitors. If they got better opportunity in terms of prizes and television exposure, these drivers can go versus Color Kinetics Inc B Case Study Help. If audiences delight in other race automobiles and drivers more than NASCAR then viewers can move to those other intriguing cars and trucks and chauffeurs. NASCAR could be having threat from its 2 direct rivals that is Solution 1 and Moto GP. They require to produce competitive advantages for motorists so they don't move to other rivals.
If company shifts from one provider to another, the provider power shows the number of providers are available in market and what is the expense associated with supplier. Because drivers with required resources and skills are restricted, in this industry there is supply monopoly.
This force is regarding to clients that is it easy for consumers to shift to other items. If there is more changing expense is associated then clients are less likely to change. When it comes to NASCAR customers are its audiences. Audiences can change to other rivals easily because audiences will having low changing cost.
Risk of Replacement
Substitutes are referred as alternatives. The alternatives in this case can be other home entertainment means like viewers can move to other sports. There are broad range of alternatives are available in this circumstance which recommends that hazard of replacement is high.
Hazard of New Entry
It is defined as how it is simple for any business to enter in that particular market. When it comes to Color Kinetics Inc B Case Study Analysis risk of brand-new entry is low. Because if any company requires to enter in this company than they have to make heavy investments. They need to build automobiles and racing tracks and also needs to pay hefty amount to motorists for switching.
As NASCAR is working in different markets so it requires to face various guidelines. It is also kept in mind that NASCAR has dealt with increased analysis regarding regulative. Every government has various priority so NASCAR has to be prepared for it as top priority can be moved to other sector.
Economic aspects includes taxation rate, currency exchange rate, financial efficiency of that particular company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize capabilities of workers to produce brand-new opportunities and improve existing chances.
Every society is different from each other. Each has different social worths and standards. It helps in understanding relating to society and choice of consumers. Social aspects consists of customs, culture, attitudes towards specific product and services, demographics, standards, interests etc. It can be concluded that advertising through other methods instead of conventional (i.e. newspaper) can be preferred in this society.
Technology has effect on nearly every business. It consists of development in company method. In this case of Color Kinetics Inc B Case Study Help it can be noted that business are greatly investing for research and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Due to the fact that every nation has different legal terms and conditions, Legal plays a crucial function in every nation. Color Kinetics Inc B Case Study Analysis requires to be make sure that they protect their legal rights in every county so any business does not hurt to its legal rights.
Environmental elements are also crucial for every company. NASCAR requires to make sure that its vehicles are not creating contamination more than acceptable level.
7 P's of Marketing
The items of Color Kinetics Inc B Case Study Solution in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race occasions tickets is based upon the place and significance of the racing events. Together with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes revenue. For instance it charged sanctioning charges of $1-2 million per race on average in 2005.
Advertising strategy of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races.
NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to understand across the country popularity.
Nestle people strategy is consisted of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important aspect of Color Kinetics Inc B Case Study Solution A marketing strategy as its occasions are the source of entertainment for crowd. Its people technique consists of efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people technique of NASCAR.
A number of service procedures are needed to perform racing occasions in an efficient way. These procedures include; appropriate schedule of time, arrangement for viewers, offering tickets, arrangement of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, improving viewers experience and increasing fan base.
Crucial physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and racing occasions. In addition to it, its retailing brands consisting of t-shirts, caps, goodies and so on, likewise act as a physical evidence for NASCAR.
Product Life Process Evaluation.
The racing occasions by NASCAR was introduced on June 19, 1949. At the first phase competitors for NASCAR was low, as the competitors drove the automobiles similar to the cars and trucks driven by common individuals.
The very first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the company moved towards broadcasting its races on tv in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular organization into one with global fan base. He initiated a new period of financially rewarding sponsorships and tv agreements for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having vast array of income sources. The business has about 500 sponsors with transmitting its events in about 150 countries. The business has a great deal of tracks in the majority of the cities of United States.
The decline in the company's offerings started after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The major reasons for decrease consist of the financial crisis of 2008, which increased the expense of coming to tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.
The marketplace segmentation of Color Kinetics Inc B Case Study Solution can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Color Kinetics Inc B Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the television broadcasting of its events in various countries. The company has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation supplies the company local in addition to global fan base.
The group segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its present fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. However currently NASCAR is attempting to increase its target audience to the young growing population and kinds also. To increase the market segment of its market NASCAR should modify its marketing techniques to attract more age and lower its costs to enter in the marketplace segment with a low average earnings.( htt1).
NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to acquire tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they also have actually tried to lower costs and make the event more hassle-free by introducing live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the events. Currently, the fans choice is towards viewing the race at house on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as costly.
One of the prospective target market of Color Kinetics Inc B Case Study Solution was Hispanics; the young and growing population of United States. The marketplace segment has excellent possible for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The sector reveals affinity with cars and truck culture, however require a more focused marketing towards inviting the section towards racing.
Kids are likewise one of the possible target market segment for NASCAR, as they are more connected socially than other groups. Automobile racing games developed by Color Kinetics Inc B Case Study Analysis can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and improving its digital functions to attract the kids target market.
This big expenditure makes the section capacity for NASCAR marketing technique of increasing its fan base. The market section thinks about NASCAR as a company doing not have in producing a multiculturalism atmosphere. NASCAR must take various steps to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing assists in taking decisions concerning marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing choice. These 5 C's represent Environment, Company, Collaborators, Customers and Rivals.
It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, legal and environmental and is specified above.
Color Kinetics Inc B Case Study Analysis is an automobile racing business with having USP of high quality car racing with an international structure. Its sector is sports group and occasions.
Collaborations includes suppliers, providers and alliances of Color Kinetics Inc B Case Study Help. It is teamed up with various racing teams which are taking part in racing. It also worked together with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it want to produce its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track.
The consumer of Color Kinetics Inc B Case Study Help are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and create generational commitment.
Groups usually represents sponsors in NASCAR and the medium of marketing is drivers. These drivers can go against NASCAR if they got much better chance in terms of rewards and tv exposure.
1. Developing and Preserving Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population segment of U.S.A. but sadly NASCAR had actually been unable to attract the this targeted segment. It should establish a Facebook page including the details relating to the races and the locations of tracks to make the consumer useful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
Color Kinetics Inc B Case Study Solution motorists has a low star power as compare to players of other sports. The poor contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an essential element for attracting viewers towards tracks and towards television.
3. Establishing New Games and improving current games for kids.
In order to draw in these kids, NASCARA ought to enhance its existing racing video games by presenting customization in the vehicles i.e. changing colours, choice of speed, introducing group racing in the game, using better graphics related to the racing tracks and presenting different levels in the game. All these adjustments in the existing game would offer much better experience to kids.
Together with it, NASCAR should likewise construct new video games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between numerous cartoon characters with an option of picking the preferred animation character for the kids. These methods would enable the company to bring in one of its potential target segments.
4. Introducing multiculturalism at events.
Color Kinetics Inc B Case Study Help events are comprised of fans with really couple of cultural diversity, due to cost of arrival in occasions, making it unattractive for the clients perceiving sport occasions as social occasions i.e. Generation Y clients. As the Generation Y clients are a prospective target audience for NASCAR, for that reason the business needs to take specific procedures to attract this potential target market. It needs to embrace methods to draw in the customers far from the tracks location with various culture. The method to do so might be supplying special discount rates on tickets or totally free tickets to viewers originating from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Client Experience at Tracks.
Color Kinetics Inc B Case Study Solution must work on facilities and features at tracks since on the race day viewers got dissatisfied. Since in very same market other companies are providing better services than NASCAR, viewers have many expectations from Color Kinetics Inc B Case Study Help. IF NASCAR do not deal with this problem then its fans may moved to its rivals. According to fans there were not sufficient facilities were available as compare to other sports service providers. NASCAR needs to make sure that it supply appropriate facilities that includes cleaned restrooms, comfy seating arrangement. They ought to also provide WIFI services and availability of credit cards throughout that track. It needs to be likewise make sure that there are enough jumbo turns positioned at all required places. There need to be also food stalls that provide quality food to viewers. In this method audiences will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Budget plan.
Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, reveals the cost related data for the marketing strategies. (See Appendix B). It can be seen that technique 5 of enhancing consumer experience at tracks would require highest preliminary financial investment and expense and method 4 of presenting multiculturalism will need least expensive initial financial investment with lowest further each year expense. The company needs to focus on the resource allotment on these techniques on the basis of its readily available resources and the possible benefits which the strategy would provide.
KEEP IN MIND: The worths about expense are assumed on rational basis due the absence of truths and figures associated with cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal aspects of Color Kinetics Inc B Case Study Analysis triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long run. These strategies would deal with internal elements like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks etc., along with with external elements like moving of fans towards other sports, demographical modifications in America and changing family life styles.